MarketWatch First Take: Micron recognizes reality and receives a relief rally

Micron Technology Inc. is finally accepting the reality of the memory-chip downturn, and investors appear to be breathing a sigh of relief.

On Wednesday, Micron MU, -0.59% reported second-quarter earnings, with revenue of $5.8 billion, down 21% from the prior year, citing “worse-than-expected pricing trends” for both dynamic random access memory chips (DRAM) and NAND flash memory, a sharp contrast from the past two years, when it saw revenue and earnings soar amid a memory-chip boom.

Read more aboutMicron’s strong results in 2018.

Even though its forecast for the fiscal third quarter was actually worse than expected, Micron shares jumped in after-hours trading, surging nearly 5% during the company’s call with analysts.

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